Businessinformation

systems

Second editionSeptember 2013

9781137265807September 2013 | Paperback

512pp | £49.99

This TexT is: • Business-focused – concise but comprehensive coverage of the core material for business

students• Grounded in theory – provides a strong foundation in the subject• Coherent and integrated – builds concepts systematically, showing the connections

between subjects and leading to a more sophisticated understanding of how different areas interrelate

• Fully up-to-date – with the latest developments and cutting edge ideas from the field• Practical – demonstrates the application of theory to real-world situations through over

30 specially-written case studies with global appeal• Supported – by a vast array of quality resources online at www.palgrave.com/business/

beynon-daviesbis2e

PLUS Business Information Systems links with 15 cases from the Journal of Information Technology and the Journal of Information Technology Teaching Cases with easy online access. Access these journals at www.palgrave-journals.com/jit and www.palgrave-journals.com/jittc.

AbouT The AuThor:

Paul Beynon-Davies is Professor of Organisational Informatics at the Cardiff Business School at Cardiff University, UK. He spent several years in the ICT industry and is the author of a number of highly successful books including Information Systems, Information Systems Development and Database Systems.

Business information systems provides a

comprehensive and accessible introduction to information systems and their application in

organisations.

WhAT’s NeW:

Take a look at some of the brand new key features for this second edition…

• Online‘CareersinIS’videos with integrated exercises in the book, easily accessible via a QR code, and featuring leading practitioners in the public and private sectors. These include the CTO of the BBC and the Deputy Head of e-Commerce at Schuh.co.uk talking about why technology is central to business operations, and providing valuable career guidance

• Newsectionsthroughoutincluding cloud computing, mobile eCommerce, eGovernment and green ICT

• ContentalignedwithIS2010modelcurricula and capability outcomes and AACSB and AMBA requirements

• NinenewUKandinternationalcases including ‘The Arab Spring and Social Media’, ‘Off-shoring in Bangalore’ and ‘The Indian Identity Number’

137

chapt e r5 Communication infrastructure

‘Man did not weave the web of life, he is merely a strand in it. Whatever he does to the web, he does to himself.’

Chief Seattle (1786–1866)

Chapter outline

AACSB learning objectives: Use of IT

5.1. Introduction5.2. Electronic delivery of goods and services5.3. Access channels IS2010

5.4. Communication networks IS2010

5.5. Th e Internet IS2010

5.6. Th e World Wide Web IS2010

5.7. Transactional data IS2010

5.8. Conclusion and key themes5.9. Review test5.10. Exercises5.11. Projects5.12. Critical refl ection5.13. Further reading5.14. References

Learning outcomes Principles

Describe the concept of ICT infrastructure and explain its eff ects on modern business.

Modern business relies on ICT infrastructure consisting of access devices, communication channels, front-end ICT, back-end ICT and core data management. Such infrastructure supports connectivity to data on the part of information systems used by both internal and external stakeholders.

Distinguish between the Internet and the World Wide Web, identify some of the critical components of the Internet and explain some of the technologies underlying the Web and their relevance for business.

Modern communication infrastructure relies on two critical technologies: the Internet and the Web. Th e Internet consists of a set of technologies which facilitate the inter-connection between data communication networks globally. Th e Web is an application which runs on the Internet and consists of standards for the transmission of hypermedia documents.

Discuss the importance of transactional data to business to business interaction and describe some approaches to handling this issue.

Data communication infrastructure connects business organisations in fl ows of transactions. Since these transactions are typically in various forms of documentation the standards for electronic transmission of such documentation are critically important for commerce.

ORGANISATION

INFORMATICS PLANNING AND MANAGEMENT

INFORMATION SYSTEMS DEVELOPMENT

INFORMATION SYSTEM

ACTIVITY SYSTEM

ENVIRONMENT

ICT SYSTEM

ICT SYSTEM

EXTERNAL ACTOR

CO

NC

EPTI

ON

AN

ALY

SIS

DESIG

N

CO

NSTR

UC

TION

IMPLEM

ENTATIO

N

EVA

LUAT

ION

IMPA

CT

VALU

E

OPERATION

VALU

E

USE

DECISIONS

DATA

INFORMATION

9781137265807_06_cha05.indd 137 6/24/2013 7:41:19 PM

Electronic business, electronic commerce and electronic government 247

III

case check

Amazon(continued)

Currently, the company is claimed to be the Internet’s number one retailer. However, although Amazon is a retailer, its key business strategy is based on diff erentiation in terms of technical infrastructure. For Amazon to keep this competitive diff erentiation it must be continually at the forefront of Internet technology. Jeff Bezos has indicated that he considers Amazon to be a technology company fi rst and a retailer second. Hence, the key diff erentiating factor for Amazon over the conventional retailer is the Internet and Web. Not surprisingly, the company has to ceaselessly innovate in terms of such technology.

Amazon off ers only one access channel to its goods, the Amazon.com website. Hence, Amazon is a clicks-only company, meaning that all its retail operation is conducted online and that the key access device used by its customers is the Internet-enabled PC. In recent times Amazon has been promoting the idea of electronic books and its associated eReader, the Kindle, as an additional access channel for its customers. After purchasing an eBook reader from the company book material in digital format can be downloaded onto this access device for a charge. Clearly, this form of access enables Amazon to substantially reduce its distribution costs for this type of product.

To maintain its B2C operation, signifi cant investment in front-end and back-end ICT is required by Amazon. For instance, Amazon’s service to customers relies on a close integration of its website to back-end information and activity systems. For instance, the company uses a streamlined ordering process reliant on previous billing and shipment details captured from the customer. Amazon also utilises secure server software that encrypts payment information throughout its integrated fulfi lment process. Most of the company’s products are available for shipping within 24 hours. The Amazon website run within each geographical region updates a large sales information system. This sales information system is also integrated with inventory management systems run at each distribution centre.

From this description it is possible to describe briefl y some of the gains that Amazon experiences from its engagement with B2C eCommerce and, in particular, through its close integration of ICT infrastructure with its activity infrastructure. First, in terms of effi cacy, Amazon has been able to diversify into a vast range of products for retail. Since Amazon is primarily a B2C company it is able to run without any physical retail outlets and can pass on effi ciency gains in lower costs to its customers. Finally, in terms of eff ectiveness, Amazon is able to sell its products across the world, meaning that its potential customer base is huge, and is able to relate to a large range of suppliers to fulfi l orders from customers.

Stuart McMillanCareers in

IS Stuart McMillan is the Deputy Head of eCommerce for the footwear retailer Schuh.

Stuart started his working life in a supermarket, supervising the fruit and veg department, after leaving University where he studied Chemistry. He then went on to manage a small outdoor retail operation, where he helped start their eCommerce website as well as writing a back-offi ce system to integrate the stock and sales information of four other branches.

After a brief period working for a biotech fi rm writing an intranet system, Stuart joined a digital agency as a senior developer, where he worked on the websites of several prominent fashion brands. One of these brands, AllSaints, hired him to help set up and run their own web development team.

While he had a proven technical background, Stuart always aspired to be a leader within business, helping to shape the direction of busy eCommerce websites. He joined the team at Schuh as a fantastic opportunity to do just that.

Stuart is also a keen participant in eCommerce conferences and writes a regular blog on the subject.

Scan the QR code under Stuart’s picture or visit www.palgrave.com/business/beynon-daviesbis2e/ to watch Stuart talking about Information Systems and careers as an IS professional, then think about the questions below:

What sort of benefi ts does a company such as Schuh ■experience from both B2C and B2B eCommerce?

How is it possible for a company selling physical goods to ■diff erentiate its eCommerce business from its competitors?

In what way are mobile access devices important to the ■eCommerce strategy at Schuh?

What are the advantages of providing customer service ■electronically?

How does Schuh manage its ICT infrastructure to facilitate ■eCommerce innovation?

How important is data security to successful eCommerce? ■

Is successful eCommerce more of a business than a purely ■ICT issue?

How has eCommerce changed consumer behaviour? ■

9781137265807_09_cha08.indd 247 6/24/2013 7:44:29 PM

338 Services, projects and operations

11.3 Informatics careers

Informatics professionals work for either informatics providers or informatics consumers, and have become an increasing part of the workforce of developed countries. Th is is clearly an indicator of growth in the information society (Chapter 3).

Informatics is a relatively young area of industrial practice, and one that is subject to rapid change. Recruitment patterns tend to be driven by requirements for short-term technological skills, such as the ability to program in the Java language, rather than longer-term transferable skills such as the ability to design eff ective and effi cient programs. Th is has made it diffi cult to establish coherent and consistent career patterns across the industry.

Professional bodies such as the British Computer Society (BCS) have attempted to address some of these diffi culties. For instance, the BCS has developed an industry structure model which tries to specify career paths for informatics professionals. It classifi es some 200 roles in the informatics domain into nine broad functional areas: (1) management, (2) policy, (3) planning and research, (4) systems development and maintenance, (5) service delivery, (6) technical advice and consultancy, (7) quality, (8) customer relations, education and training, (9) support and administration.

Ten levels of autonomy, accountability and responsibility are defi ned across these nine functional areas, ranging from unskilled entry, through experienced practitioner, to senior manager/director/consultant. Not all functions are performed across all levels of responsibil-ity. Programming as a role, for instance, only involves the lower levels, whereas management involves the higher levels. For each role, the BCS has specifi ed the ideal background for the person to fi ll it, as well as the range of activities they are likely to undertake. Th e emphasis is on generic skills, such as an ability to design and build databases, rather than specifi c vendor-related skills such as abilities in the Oracle tool-set.

Because informatics is now central to most organisations, the demand for skilled infor-matics staff has remained steady, and in some sectors has grown signifi cantly over the last decade, fuelled by growth in eBusiness and eCommerce strategies in both the private and public sectors. Because there is a shortage of skilled informatics professionals in many coun-tries, many economies have looked to other countries worldwide to supply workers. Many US companies, for instance, have outsourced informatics activities, such as development and maintenance, to the Indian subcontinent, particularly the Bangalore region. Countries such as the United Kingdom have included informatics workers in their list of preferred occupa-tions, so that those who off er these skills get priority in immigration procedures.

Katherine CoombsKatherine Coombs is the global Chief Information Offi cer (CIO) for Proxima, a leading pure-play outsourcer and provider of procurement services. Coombs is a Board-level executive with dual responsibility for both client-facing ICT solutions and internal ICT operations, spanning Europe and the US.

Coombs holds a degree in computer science and numerous technical certifi cations.

Her ICT career spans more than 10 years and covers a diverse range of sectors, from fi nance and government to services and retail. An Australian national, Coombs worked internationally as an ICT consultant specialising in large-scale infrastructure programmes for clients such as Virgin Atlantic, HMRC, and Standard Chartered Bank.

Relocating to the UK in 2005, Coombs joined Lloyds TSB as senior manager of its ICT innovation and research team in 2007. Coombs delivered a £50M IT-led innovation pipeline

exploiting new revenue streams or reducing costs before being appointed as CIO of the Savings division when Lloyds TSB acquired HBOS, forming the UK’s largest bank, Lloyds Banking Group.

Scan the QR code underneath Katherine’s picture or visit www.palgrave.com/business/beynon-daviesbis2e/ to watch Katherine talking about Information Systems and careers as an IS professional, and then think about the questions below:

There is a gender imbalance in people opting for a career ■in informatics. More male than female students take secondary, tertiary and higher-level courses with an ICT component. Why do you think this is, and how would you begin to address this imbalance?

Do you think that it is important for a CIO to be a member ■of the executive board of the company? Why?

Careers in

IS

9781137265807_12_cha11.indd 338 6/24/2013 7:46:52 PM

Electronic business, electronic commerce and electronic government 247

III

case check

Amazon(continued)

Currently, the company is claimed to be the Internet’s number one retailer. However, although Amazon is a retailer, its key business strategy is based on diff erentiation in terms of technical infrastructure. For Amazon to keep this competitive diff erentiation it must be continually at the forefront of Internet technology. Jeff Bezos has indicated that he considers Amazon to be a technology company fi rst and a retailer second. Hence, the key diff erentiating factor for Amazon over the conventional retailer is the Internet and Web. Not surprisingly, the company has to ceaselessly innovate in terms of such technology.

Amazon off ers only one access channel to its goods, the Amazon.com website. Hence, Amazon is a clicks-only company, meaning that all its retail operation is conducted online and that the key access device used by its customers is the Internet-enabled PC. In recent times Amazon has been promoting the idea of electronic books and its associated eReader, the Kindle, as an additional access channel for its customers. After purchasing an eBook reader from the company book material in digital format can be downloaded onto this access device for a charge. Clearly, this form of access enables Amazon to substantially reduce its distribution costs for this type of product.

To maintain its B2C operation, signifi cant investment in front-end and back-end ICT is required by Amazon. For instance, Amazon’s service to customers relies on a close integration of its website to back-end information and activity systems. For instance, the company uses a streamlined ordering process reliant on previous billing and shipment details captured from the customer. Amazon also utilises secure server software that encrypts payment information throughout its integrated fulfi lment process. Most of the company’s products are available for shipping within 24 hours. The Amazon website run within each geographical region updates a large sales information system. This sales information system is also integrated with inventory management systems run at each distribution centre.

From this description it is possible to describe briefl y some of the gains that Amazon experiences from its engagement with B2C eCommerce and, in particular, through its close integration of ICT infrastructure with its activity infrastructure. First, in terms of effi cacy, Amazon has been able to diversify into a vast range of products for retail. Since Amazon is primarily a B2C company it is able to run without any physical retail outlets and can pass on effi ciency gains in lower costs to its customers. Finally, in terms of eff ectiveness, Amazon is able to sell its products across the world, meaning that its potential customer base is huge, and is able to relate to a large range of suppliers to fulfi l orders from customers.

Stuart McMillanCareers in

IS Stuart McMillan is the Deputy Head of eCommerce for the footwear retailer Schuh.

Stuart started his working life in a supermarket, supervising the fruit and veg department, after leaving University where he studied Chemistry. He then went on to manage a small outdoor retail operation, where he helped start their eCommerce website as well as writing a back-offi ce system to integrate the stock and sales information of four other branches.

After a brief period working for a biotech fi rm writing an intranet system, Stuart joined a digital agency as a senior developer, where he worked on the websites of several prominent fashion brands. One of these brands, AllSaints, hired him to help set up and run their own web development team.

While he had a proven technical background, Stuart always aspired to be a leader within business, helping to shape the direction of busy eCommerce websites. He joined the team at Schuh as a fantastic opportunity to do just that.

Stuart is also a keen participant in eCommerce conferences and writes a regular blog on the subject.

Scan the QR code under Stuart’s picture or visit www.palgrave.com/business/beynon-daviesbis2e/ to watch Stuart talking about Information Systems and careers as an IS professional, then think about the questions below:

What sort of benefi ts does a company such as Schuh ■experience from both B2C and B2B eCommerce?

How is it possible for a company selling physical goods to ■diff erentiate its eCommerce business from its competitors?

In what way are mobile access devices important to the ■eCommerce strategy at Schuh?

What are the advantages of providing customer service ■electronically?

How does Schuh manage its ICT infrastructure to facilitate ■eCommerce innovation?

How important is data security to successful eCommerce? ■

Is successful eCommerce more of a business than a purely ■ICT issue?

How has eCommerce changed consumer behaviour? ■

9781137265807_09_cha08.indd 247 6/24/2013 7:44:29 PM

338 Services, projects and operations

11.3 Informatics careers

Informatics professionals work for either informatics providers or informatics consumers, and have become an increasing part of the workforce of developed countries. Th is is clearly an indicator of growth in the information society (Chapter 3).

Informatics is a relatively young area of industrial practice, and one that is subject to rapid change. Recruitment patterns tend to be driven by requirements for short-term technological skills, such as the ability to program in the Java language, rather than longer-term transferable skills such as the ability to design eff ective and effi cient programs. Th is has made it diffi cult to establish coherent and consistent career patterns across the industry.

Professional bodies such as the British Computer Society (BCS) have attempted to address some of these diffi culties. For instance, the BCS has developed an industry structure model which tries to specify career paths for informatics professionals. It classifi es some 200 roles in the informatics domain into nine broad functional areas: (1) management, (2) policy, (3) planning and research, (4) systems development and maintenance, (5) service delivery, (6) technical advice and consultancy, (7) quality, (8) customer relations, education and training, (9) support and administration.

Ten levels of autonomy, accountability and responsibility are defi ned across these nine functional areas, ranging from unskilled entry, through experienced practitioner, to senior manager/director/consultant. Not all functions are performed across all levels of responsibil-ity. Programming as a role, for instance, only involves the lower levels, whereas management involves the higher levels. For each role, the BCS has specifi ed the ideal background for the person to fi ll it, as well as the range of activities they are likely to undertake. Th e emphasis is on generic skills, such as an ability to design and build databases, rather than specifi c vendor-related skills such as abilities in the Oracle tool-set.

Because informatics is now central to most organisations, the demand for skilled infor-matics staff has remained steady, and in some sectors has grown signifi cantly over the last decade, fuelled by growth in eBusiness and eCommerce strategies in both the private and public sectors. Because there is a shortage of skilled informatics professionals in many coun-tries, many economies have looked to other countries worldwide to supply workers. Many US companies, for instance, have outsourced informatics activities, such as development and maintenance, to the Indian subcontinent, particularly the Bangalore region. Countries such as the United Kingdom have included informatics workers in their list of preferred occupa-tions, so that those who off er these skills get priority in immigration procedures.

Katherine CoombsKatherine Coombs is the global Chief Information Offi cer (CIO) for Proxima, a leading pure-play outsourcer and provider of procurement services. Coombs is a Board-level executive with dual responsibility for both client-facing ICT solutions and internal ICT operations, spanning Europe and the US.

Coombs holds a degree in computer science and numerous technical certifi cations.

Her ICT career spans more than 10 years and covers a diverse range of sectors, from fi nance and government to services and retail. An Australian national, Coombs worked internationally as an ICT consultant specialising in large-scale infrastructure programmes for clients such as Virgin Atlantic, HMRC, and Standard Chartered Bank.

Relocating to the UK in 2005, Coombs joined Lloyds TSB as senior manager of its ICT innovation and research team in 2007. Coombs delivered a £50M IT-led innovation pipeline

exploiting new revenue streams or reducing costs before being appointed as CIO of the Savings division when Lloyds TSB acquired HBOS, forming the UK’s largest bank, Lloyds Banking Group.

Scan the QR code underneath Katherine’s picture or visit www.palgrave.com/business/beynon-daviesbis2e/ to watch Katherine talking about Information Systems and careers as an IS professional, and then think about the questions below:

There is a gender imbalance in people opting for a career ■in informatics. More male than female students take secondary, tertiary and higher-level courses with an ICT component. Why do you think this is, and how would you begin to address this imbalance?

Do you think that it is important for a CIO to be a member ■of the executive board of the company? Why?

Careers in

IS

9781137265807_12_cha11.indd 338 6/24/2013 7:46:52 PM

137

chapt e r5 Communication infrastructure

‘Man did not weave the web of life, he is merely a strand in it. Whatever he does to the web, he does to himself.’

Chief Seattle (1786–1866)

Chapter outline

AACSB learning objectives: Use of IT

5.1. Introduction5.2. Electronic delivery of goods and services5.3. Access channels IS2010

5.4. Communication networks IS2010

5.5. Th e Internet IS2010

5.6. Th e World Wide Web IS2010

5.7. Transactional data IS2010

5.8. Conclusion and key themes5.9. Review test5.10. Exercises5.11. Projects5.12. Critical refl ection5.13. Further reading5.14. References

Learning outcomes Principles

Describe the concept of ICT infrastructure and explain its eff ects on modern business.

Modern business relies on ICT infrastructure consisting of access devices, communication channels, front-end ICT, back-end ICT and core data management. Such infrastructure supports connectivity to data on the part of information systems used by both internal and external stakeholders.

Distinguish between the Internet and the World Wide Web, identify some of the critical components of the Internet and explain some of the technologies underlying the Web and their relevance for business.

Modern communication infrastructure relies on two critical technologies: the Internet and the Web. Th e Internet consists of a set of technologies which facilitate the inter-connection between data communication networks globally. Th e Web is an application which runs on the Internet and consists of standards for the transmission of hypermedia documents.

Discuss the importance of transactional data to business to business interaction and describe some approaches to handling this issue.

Data communication infrastructure connects business organisations in fl ows of transactions. Since these transactions are typically in various forms of documentation the standards for electronic transmission of such documentation are critically important for commerce.

ORGANISATION

INFORMATICS PLANNING AND MANAGEMENT

INFORMATION SYSTEMS DEVELOPMENT

INFORMATION SYSTEM

ACTIVITY SYSTEM

ENVIRONMENT

ICT SYSTEM

ICT SYSTEM

EXTERNAL ACTOR

CO

NC

EPTI

ON

AN

ALY

SIS

DESIG

N

CO

NSTR

UC

TION

IMPLEM

ENTATIO

N

EVA

LUAT

ION

IMPA

CT

VALU

E

OPERATION

VALU

E

USE

DECISIONS

DATA

INFORMATION

9781137265807_06_cha05.indd 137 6/24/2013 7:41:19 PM

9781137265807September 2013 | Paperback

512pp | £49.99

MessAge To sTudeNTsMessAge To LecTurersAbouT The bookguided Tour of The book

1. iNTroducTioN: The doMAiN of busiNess iNforMATioN sysTeMs

PArT i: key coNcePTs 2. Organisations and Systems3. Data, Information and Knowledge4. Information Systems and Organisational Infrastructure

PArT ii: uNdersTANdiNg icT5. Communication Infrastructure

6. ICT Systems Infrastructure

PArT iii: APPLyiNg iNforMATioN sysTeMs To busiNess7. The Business Environment8. Electronic Business, Electronic Commerce and Electronic Government

9. Assessing the Use and Impact of Information Systems

PArT iV: MANAgiNg iNforMATioN sysTeMs iN busiNess10. Planning, Strategy and Management11. Services, Projects and Operations12. Information Systems Development13. Conclusion: Successful Informatics Practice

cAse sTudiesbibLiogrAPhygLossAryiNdex

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9781137265807September 2013 | Paperback

512pp | £49.99

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A concise, lower-level introduction to information systems